Investment agreement
What is an investment agreement?
An investment agreement is an agreement between a person or company that has money to invest (called an investor) and another person or company that needs financing for their project or business (called investment receiver). In this agreement, the investor provides funds to the investee in exchange for a share of future profits or ownership of the business. The investor seeks to make a profit through the success of the project, and the investor obtains the necessary capital to grow their business.
When to use this contract?
An investment agreement is used when a person or entity wants to invest capital in a project, business or company. It is especially common in situations where the recipient needs additional financing to expand, develop new products, enter new markets, or carry out growth activities. Investment agreements can also take place when seeking capital to start a business or when an injection of funds is required to overcome financial difficulties.
Essential content
The essential content of an investment agreement includes:
- General information about the company.
- Total number of shares or participations that the investor will acquire.
- Estimated economic value of the company.
- Investment duration.
- Right of veto of the investor on certain aspects.
- Clause of obligation of permanence.
- Conditions for the transfer of shares or participations.
- Right to repurchase shares or shares.
- Right to information that investors have about the situation of the company.
- Protection of intellectual and industrial property.
- Minimum price to be returned in case of acquisition of shares or participations by a third party.
Optional content
Additionally, the investment agreement includes the following clauses:
- Confidentiality clause.
- Exclusivity clause.
Necessary information
Investors can be individuals, companies or investment funds, regardless of whether or not they are experts in the field of venture capital and business investment.
Applicable law
The foundation of the investment agreements arises from article 1,255 of the Civil Code, which establishes the independence of the will of the parties or the freedom to agree, and, consequently, to determine the most appropriate clauses and terms for the contracting parties, with the only restriction being compliance with the legislation, ethical principles and the general interest.
Related concepts
How much does it cost to make this contract with LexDoka?
Currently, we do not have an automated model for this contract. However, if you are interested, please let us know through this contact form, and we will take it into account to develop it and notify you when it is available. If you need it urgently, LexDoka offers a personalized contract automation service where we will work together with you to see what your needs are and develop it exclusively for you in the shortest possible time. If you are interested contact us.